. Presently it is outsourcing between 30% and 50% of its mobile phone business. If the Xelibri brand takes off and is successful in gaining a significant market share it will ease some of the pressure on the mobile phone segment.
             It is expected that competition in the domestic mobile phone market will become even more heated in the very near future, which will force most companies to make further price cuts. As a result, Siemens Shanghai Mobile will put more energy into the research and production of network equipment for third generation mobile communication.
             Success in China remains crucial for Siemens with Motorola holding onto the top spot. Despite this competition, Siemens has also made gains, with a sales increase from 8 million units to 12.1 million units in 2003 and a market share at 9.1 percent, up from 7.4 percent.
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